On May 12, Telegram officially terminated its involvement in its planned blockchain project, the Telegram Open Network, and its corresponding GRAM token. Apparently ending its long-running legal battle with the United States’ regulators, Telegram still needs to sort out $1.7 billion raised in an initial coin offering, or ICO, in 2018. Prior to abandoning the troubled TON project, Telegram CEO and founder Pavel Durov introduced a reimbursement scheme, offering TON investors two choices — immediate 72% refund, or a 110% refund in 12 months. Major $70 million investor is preparing to quit with 72% According to a May 16 report …

Per a May 12 message from Telegram CEO Pavel Durov, the company is calling it quits on the Telegram Open Network (TON) and the linked Gram tokens following a lengthy battle with the United States Securities and Exchange Commission. After announcing the TON network and Gram token back in 2017, Telegram is now officially terminating its involvement with the project, Durov said. U.S. court breaks sovereignty of global jurisdictions, Durov argues In the post, dubbed “What Was TON And Why It Is Over,” Telegram CEO said that they made the decision in response to a U.S. court prohibiting Telegram from …

On May 9, we wrote that the Loom Network, a platform-as-as-service blockchain project, appeared to no longer be active. Representatives from the platform have since responded publicly to Cointelegraph, indicating that the project is, in fact, alive and well. Communication in stasis Following the departure of the network’s CEO, the project announced that it would be pivoting away from its original business model into an enterprise-facing solution. In the weeks that followed, a number of the Loom Network’s validators abandoned the project, with one calling the network dead in a March 31 tweet. Communication appeared to have stalled on the …

In an exclusive interview with Cointelegraph, Gibraltar’s minister for digital and financial services, Albert Isola, has welcomed firms wishing to launch security tokens to the jurisdiction. The minister revealed that the British Overseas Territory assumes that all token offerings are securities issuances by default, placing the responsibility on the issuer to be able to demonstrate otherwise. Minister Isola also revealed that the government will soon mandate that the employees of all financial firms in the jurisdiction attend a university course on anti-money laundering, or AML, risks. Gibraltar welcomes security tokens Minister Isola stated that Gibraltar welcomes firms seeking to conduct …

According to available information at press time, sources show a highly uncertain future for the Loom Network, a platform-as-as-service blockchain project. Cointelegraph investigated a number of Loom Network communication channels, finding no firm proof of a live project. A May 8 tweet from Bruno Skvorc, owner of blockchain and cryptocurrency education platform, Bitfalls, led Cointelegraph staff down an investigative rabbit hole into the project's current status. Loom no longer has an active Telegram, Reddit, or blog. The project's main team has also left, Skvoric said in the tweet. "I'd call it an exit scam if there was anything left to …

A new round of documents have been filed in the lengthy dispute between the United States Securities and Exchange Commission, or SEC, and Kik Interactive Inc. over the messaging company’s 2017 initial coin offering, or ICO. Both parties are seeking summary judgment, with the SEC submitting a proposed order that it hopes the court will sign. However, Kik is confident that the judge will rule in its favor, asserting that the SEC’s argument rests heavily on construing the Telegram case as precedent. SEC proposes summary judgment order The SEC filed a proposed order on May 8 outlining its request for …

A new study released by venture capital firm, MMC Ventures, found that UK blockchain companies are turning to traditional capital raising strategies, noting that the Initial Coin Offering, or ICO, model is becoming “increasingly” difficult to utilize. According to the research published on April 30, ICOs represent a “valuable” funding source for open-source projects. However, they allege that cheap access to capital combined with a lack of understanding of the esoteric concepts involved in most crypto projects, generated the perfect conditions for a “bubble.” The research further quotes a study, previously reported by Cointelegraph, on the fact that almost 80% …

A Californian judge has given preliminary approval for a $25 million settlement proposed by the Tezos Foundation to end a consolidated class-action lawsuit. The lawsuit dates back to shortly after Tezos’ $232 million initial coin offering (ICO) in July 2017, when investors started filing claims against the firm, accusing Tezos of issuing unlicensed securities in the U.S. According to court documents from an April 30 hearing, the judge wrote, “the Court will likely be able to approve the settlement, subject to further consideration at the Settlement Hearing”. The date for the Settlement Hearing is yet to be set. If the …

Encrypted messaging platform Telegram appears to have accepted a United States court ruling that the company cannot distribute its Grams tokens or launch the Telegram Open Network (TON) until the dispute has been resolved. With Telegram missing its deadline to launch TON by April 30, a refund clause in Telegram’s purchase agreements means that investors can now claim refunds. However, while proposing an immediate refund of 72% of investors’ stakes, the platform is also offering repayment of 110% on April 30, 2021. Investors who opt to accept the loan may be able to redeem their stake for crypto assets in …

The U.S. Securities and Exchange Commission, or SEC, and Kik Interactive have both filed oppositions to each other's motions for summary judgment on April 24. While Kik claims its offerings were exempt from registration requirements, the SEC asserts Kik’s 2017 initial coin offering (ICO) comprised a clear violation of securities laws. Kik and SEC battle it out over Howey Test Kik maintains that the SEC has failed to provide sufficient evidence that it cultivated the expectation of profits among its customers, or that Kik’s investors entered into a common enterprise with the company — two of the Howey Test’s three …

Ripple has long occupied a controversial position in the cryptocurrency industry. The ascension of Ripple’s in-house token, XRP, to the position of the second-largest cryptocurrency by market cap was enough validation for some that the company was set to play a major role in the industry for many years to come. However, since those halcyon days, momentum has slowed, and aside from a few notable blips, the company has been dogged by rumors and a steady decline in XRP’s value. Ripple fails to make waves online Because of the ambitious philosophical goals at the heart of the cryptocurrency ecosystem, it …

Investors who participated in the FLiK initial coin offering, or ICO, in 2017 have opposed entertainer Kevin Hart’s bid to have the $7 million lawsuit dismissed. The 25 investors claim that they collectively lost more than $2 million as a result of Hart, rapper ‘T.I.’, and FLiK executive, Ryan Felton, touting unregistered securities for an ICO that ultimately failed to materialize. ICO investors fight for suit against Kevin Hart to proceed In their opposition, the plaintiffs argued that the FLiK ICO “depended on” endorsements from celebrities to “elevate the standing” and perception of the offering. The investors assert that they …